January 26, 2013 13:52
Lukoil negotiating launch of Odessa oil refinery with Ukrainian govt - Alekperov
DAVOS. Jan 26 (Interfax) - The Russian oil company Lukoil is holding negotiations with the Ukrainian government to remove technical obstacles preventing the start of the Odessa oil refinery belonging to the company, Lukoil President Vagit Alekperov told Interfax on the sidelines of the World Economic Forum in Davos.
"The fact that the pipe is filled with Azeri oil causes questions. That is, technological issues that we are discussing with the Ukrainian government need to be resolved. And the plant will be launched if these issues are resolved," Alekperov said.
In addition, the situation on the world market should be favorable for the oil refinery to operate, Alekperov said. "We are a Ukrainian processor now, and we are interested in seeing the Ukrainian oil refinery industry's stable work," he said.
Ukrainian Deputy Prime Minister Yury Boiko told Interfax that the Ukrainian government is interested in launching the oil refinery. "We will facilitate this and will provide all conditions for the domestic oil refinery industry to start working. Practical steps toward this will be taken in the near future," he said without specifying details.
The government is still considering the sale of its stake in Ukrnafta, the largest Ukrainian oil producer, he added.
Ukrainian oil refineries and gas processing plants halved the amount of oil processed in 2012 compared to 2011 to 4.57 million tonnes. In fact, only one of the six Ukrainian oil refineries, i.e. the Kremenchug facility belonging to Ukrtatnafta, is operating at the moment.
The Odessa oil refinery was stopped in October 2010 in light of an economic situation on the Ukrainian oil product market and the amendment of the oil shipment procedure.
The Odessa oil refinery is operated by Lukoil-Odessa Oil Refinery belonging to Lukoil. Its projected capacity is 2.8 million tonnes a year.
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